are you so proud of i'm sorry but i'm not seeing your triumph but that's just my opinion. if. you give. us. welcome to the kaiser report imax kaiser fake it till you make it the phrases similar to aristotle's notion that acting virtuous will make one virtuous and according to wikipedia it is often recommended as a therapy technique for combating depression in this case the idea is to go through

the routines of life as if one were enjoying them despite the fact that initially it feels forced and continuing doing this until the happiness becomes real this is an example of a positive feedback loop now america is trying this as a policy technique to combat economic depression the only problem is that this economic depression is not a state of mind but a state of fact states max america's going to try to fake manufacturing until they never really quite make manufacturing the first headline let's just pretend we didn't offshore manufacturing so federal agencies grouped under the bland sounding economic classification policy committee e.c. p.c. are proposing to radically redefine u.s. manufacturing and trade statistics this is just a proposal and it's on their website you can go to they dot gov website and look it up but under the proposal u.s. firms that have offshore their production abroad like apple would become quote

factory lists goods manufacturers the foreign factories that actually manufacture the goods like the notorious i phone producing foxconn factories in china would no longer be manufacturers but quote service providers for the rebranded manufacturing firms like apple yeah you know it's like falling off a cliff it's only the last couple of feet that hurts now in other words the u.s. economy has fall off a cliff and on the way down they are. deciding to really gauge or recalculate what it means to be falling off a cliff at first it was just hey we're falling off a cliff and we're approaching the valley of our demise but then during the flight down they'll say well no actually gravity we're going to redefine what gravity means or we're going to redefine what the rotation of the earth means in relation to our collapsing into the pit of a manufacturing a business and they do this all the way down into all such time as oh my god actually hit the floors so to speak and all the statistical mirage all of us to

just call re calibration is for not you cannot pods you can't taper apologies game here you cannot recalculate your way out of what is just a cli and economic collapse on the manufacturing base so let's see how this proposal if it became fact what it would entail what it would mean so you know how foxconn creates all these i phones well the proposal would treat some goods exported by foreign factories as u.s. manufactured exports take a scenario which apple ships i phone parts to china that are assembled by foxconn and that shipped to the e.u. currently apple's exports of parts to china counts as the only u.s. export in the scenario but the e.c. p.c. proposal according to officials of the c.p.c. member agency is what is that count china's export of the fully assembled i phones to the e.u. less the cost of any import of parts as u.s. manufactured goods exports so china sends to the e.u.

. i phones and we would count that in america has manufacturing and exports like p.c. is really smart sonic b.c.p. . easy p.c. starting p.c. pete they need to get off the p.c.p. and start to look at the economic rail take good not open them so at so europe is not part of the u.s. a court of as game so by simply shuttling from let's say los angeles to obama or paris that's just an extension of the american trade zone that's part of the manufacturing base in america as a court is a new version yet it's kind of like that whole enron model where you know before enron people come to the stacks they have to find in send and ship oil and deliver energy but then they just turned into a derivative and said we'll just make like we're doing that just trade contracts but out actually do it here america is the same thing it's like suddenly overnight become a manufacturing powerhouse like germany so what happens when you go up the gold

standard you know back and i think seventy one the u.s. kind of went off the gold standard and as a result so there's nothing that's in the economy that represents i think a tangible value that people can look at and weigh and all that it has real intrinsic worth it all because financial lies and then here we are forty fifty years later after the going off the gold standard in the financial ization. charade has reached is a pos the osis where now is simply a matter of statistically recalibrating how you calculate what is in the netherworld of virtual manufacturing as a determinant of whether or not your economy is growing and on and as a result you will either raise or lower interest rates which themselves are tied to a series of accounting fraud perpetrated by the central banks and this is how they adjust their salaries and bonuses to account for this massive fraud accordingly going off the gold standard was the original fake it till you make it so they were faking it and saying like one day we might make it and he talked about salaries

that's in this next bit be guarding this leisure demain of turning you know factory lease good factory goods into manufacturing well the proposal would spur a disingenuous overnight increase in the number of u.s. manufacturing jobs as white color employees and firms like apple now rebranded as factory less goods producers would suddenly be counted as manufacturing workers this change would also create a false increase and in manufacturing wages as many of the newly counted manufacturing jobs would be designers programmers and brand managers actory list goods producers like apple well apples feeling guilty because they have billions of dollars offshore that they refused to bring onshore onto america because they'd have to pay the taxes so apple's a tax scofflaw fair there are tax avoider they feel bad about that they feel bad about the suicide deaths around the factories or in china where kids routinely commit suicide to avoid the slave labor conditions to build apple products so apple

is trying to figure out how can we make it look like we're doing something good without actually spending a penny well i know reclassify all these jobs as manufacturing jobs this will satisfy the government and any lawmaker trying to come down on us for being a merciless slave master and accounting fraud perpetrator of course of the work because their accountants are the same account. that accounts for them fraud of the u.s. government now i think it also could be signs of america wanting to come to terms with having an empire again they don't like to publicly admit it but they do have an empire and here they're like well china is part of our empire where they empire we run the world so any goods manufactured anywhere overseas all the stuff manufactured in germany we should count that on the u.s. g.d.p. as well because this is our empire well you know dinner is like the enron accounting methodology where they simply decided that everything off the balance sheet had nothing to do with them they're no risk whatsoever anything that they made on the balance sheet they consider to be profitable by to the extreme amount because they had no risk associated with that financial fraud assembly line that

they had built down there at the enron headquarters and apple was to become the enron of handheld devices essential or they want to excel and fraud and member after nine eleven the apple executives reprice stock options in a way that benefited from the nine eleven catastrophe that's where the mindset is a people like tim cook currency and the apple management system no tragedy is great enough that they won't try to cash in so here they fake it till they make it and how however when everything is fake everything is fraud everything is a derivative how do they know when they've made it well you can possibly look at the real world and see whether or not there's any science there that you're making at fracking boom has provided only a modest boost to u.s. manufacturers the fracking boom has driven down natural gas prices but it's having a relatively small impact on u.s. manufacturers on the altar of a two to three percent boost and activity across the sector according to new research from the federal reserve so mostly all this cheap gas natural gas that

they have in america because of the closed market of natural gas inside america. it's not boosting any manufacturing and why is it not boosting any manufacturing perhaps because they actually don't manufacture anything there in particular are they saying that it has an increased jobs at. as an added anything to jobs despite natural gas prices and because of the fracking going on since two thousand and six despite that we have eight years now of nothing actually happening so that might be a sign that all that faking it you're not making it well this is how stupid these people are if you go to a dilapidated car factory in detroit that has been abandoned for twenty years and you show up and say we've got finally a good deal on energy. all the workers are in jail as part of the it president just to accomplish the factory is all rusted out and got it and everyone smoke and crack and you're saying but we got cheaper energy to do what to do the whole thing

collapsed thirty forty years ago buddy but of course they don't but they'll book that delivery of that gas that will go and do nothing as of course the as a bonus payment and the shares will go up because a they will book that delivery even though it never makes it to a shop floor or and improves manufacturing or exports in any way nothing like that as far as the real economy will grow one iota but that contract which is spuriously created fraudulent lee concocted and miscellaneous lee a sign suddenly becomes the basis for an uptick in some but executive bonus because they put this deal together. now of course there was a large impact of these natural gas prices felt over in places like north dakota where there's been an energy prostitutes or is the prostitution market in north dakota skyrocketing the lap dances are dropping in price and they're cheaper to get

a lap dance cheaper north dakota than again in seattle washington which i didn't think was possible then the five dollars up that's in seattle you know nice lap dances but now north dakota i think it's like for two bucks fifty you can get like a slam and lap dance and that's what i call progress in america but on top of that it's also enabled a cheaper fertilizer. and junk to be thrown into the environment the effect is large in most energy intensive fields such as production of nitrogen based fertilizers but across the manufacturing sector as a whole represented by the weighted average responses the effects are quite modest with capital expenditures increasing no more than ten percent production increase in less than three percent and import employment creasing less than two percent now of course when they talk about fracking coming here they talk mostly only about the jobs oh you peasants out there you know if you allow us to tear up your your land and your water supply we'll give you jobs but the impact here studied by the own the federal reserve who as far as i know is not in the pay or the payroll of russia

they're saying that it actually has not added any jobs as a negligible amount within the probably the margin of error and it's only increased the use of fertilizers because it's become so cheap to create these toxic waste that you know is destroying the economy in their environment fracking in the u.k. makes no economic sense they're going to through if they rebranded as pedophilia because pedophilia in the u.k. sells like hotcakes whether it's all the politicians the royal family of corporate leaders they can't all media titans they can't get enough of this pedophilia scandal so few brand fracking as pedophilia then the queen will sign off on a david cameron so i don't have a george allen for a final because they love pedophilia this country they can't get up an affair in this country brand for i think it's pedophilia and britain will sign off on it yes that's true there's a lot of paedophilia scandals here but i wanted to say in the last few seconds here that i was stopped on the street by a fireman who wanted me to give this to you and it's called we rescue people not banks stop the cuts there's a big strike across the u.k. for many days coming up thank you fire person and good luck thank you stacey thank

you max stay tuned for the second i have a whole lot more. i'm marinating in the financial world. dr seuss to comments cannot stop it is a very lonely take no demand to credit is not going to get any economic benefit in life there are. folks i'm abby martin the stories we cover here we're not going to hear any right other big story the extra headline same time there's a reason they don't want to deny all that are important and telling the truth that we should all be completely outraged now let's break the set.

dramas that can't be ignored to the. stories others look use the notes. the faces change the world lights never. sold picture. from around the globe.

look to. welcome back to the kaiser report imax keyser time now to turn to robert david steele author of a new book the open source everything manifesto transparency truth and trust stales a former u.s. marine cia officer and co-creator of the marine corps intelligence center robert welcome to the kaiser report glad to be here are let's talk about what is open source everything and let's start with your field of expertise open source intelligence. well the bottom line is that really big decisions decisions that are cost effective and sustainable have to be with the public in mind and with the public as a complete participant secret decisions are generally wrong because they're based

on the wrong intent and the wrong information so open source intelligence which is part of a larger open source ecology is really about public intelligence in the public interest it's about hybrid governance in which you don't allow a badly informed badly organized government to make decisions on its own that turn out to be bad and also it's about not allowing the city of london to make decisions based on its own interests rather than information that is in the public interest now robert this is by definition you could say the definition of anarchy and let me explain what i mean by that and in a centrally controlled system or a you know a dictatorship system or the decisions i hierarchical they're at the top and they are they opposed to everyone else based on just a few people's expertise that's one way to get what you're describing is really

adequate and in the sense that on the periphery on the open source periphery on the on the edges of the network is where the intelligence accumulates and it informs the whole as such i mean you could look at programs like the liberate iraq saphir. pan or starts with a p. . pattern is the opposite of anarchy panner. is when everybody who has something to contribute in the way of information or perspective is part of the discussion what panicky really means is that the indigenous native forebear concepts that were alive and well in england before the enclosure of the commons in the united states before the wars against the indian american and the native americans. everybody comes together everybody has a say it's not anarchy in that every individual is not allowed to be

a free rider it's saturday in that it is self governance is a wonderful book by. a woman who got a nobel prize. by showing that governing the commons is something that is best done by all those who are part of the commons precisely because they can not only create rules that make sense they're also there to do the monitoring and the enforcement as you go forward so strike the word anarchy from any connection to open source everything. well i am no addict is a word whereas patrick king is something you just made up i mean how do i let us try to confess i don't have a very very long time. but they traditionally vatican certainly nothing to be scoffed at mean if you look at for example all of i was talking about a moment ago there rise of open source software and let's say linux which was a actually killed microsoft in many ways that was an example of why you're talking

about your opiates and thoughts is called open source where you are essentially allowing for all those and the network to contribute to the betterment of the whole how does a square with your former life as a cia. officer oh well first off let me go back and point out to you that line expose the hierarchy it was a hierarchy of merit in which every individual voluntarily conceded that the person in the next level was superior to them with their skills so as a community now as far as the cia goes the cia model from john is the truth shall make you free and of course that model is dishonored every day my own motto is the truth at any cost lowers all other costs the connection between what i do today as a public intelligence officer and what i did in the cia as a clandestine intelligence officer is that the truth is

a sensibly the objective in the former and is absolutely the objective in the current and this brings us back to true cost economics and holistic analytics there isn't a bank on the planet it is making decisions on the basis of true cost economics they are all privatizing profit and externalizing cost and critically cost in relation to child labor on water usage toxins put into the atmosphere these are true costs and these are course that are to. in a come to bear on future generations so i'm after the truth is the reason the truth matters to banks and corporations is because if you look at the five billion people who have a in aggregate income most of four trillion dollars which is more per year than the one billion rich the only sustainable profit the only scalable profit is profit it is great solicit analytics a true cost economics and that has to be open ok i want to get some perspective on

this the dow jones industrial average is currently trading at around seventeen thousand if you were to suddenly force the s. and p. five hundred to apply true cost accounting and not externalized all their risk whether it's labor as korea environmental rest etc what would the dow jones be trading for today that's a good question because essentially the dow jones is a crapshoot. it is it is a massive fraud on the public on the banks and the corporations make their money on the i.p.o. with friends and family they didn't dump all of that risk to the public what i think is beginning to happen is they moved to a word locally based currencies locally based stocks locally based trading locally based you spatially rooted changeable though you it's right but my point is robert that if in fact he used to cost accounting on the s. and p. five hundred the dow jones would probably be closer to three thousand not seventeen

thousand and so the u.s. economy would not be a seventeen trillion dollar economy it would be a three trillion dollar economy or four trillion dollar economy which in the long run is probably a fantastic thing because it shows that the economy is not aggressively impeding into what you might call the public domain or the commons accent or a but how are you going to transition to a model where tens of trillions of dollars are going to be sucked out of the pockets of the club the crowd of bankers and the corporate c.e.o.'s that are taking advantage of this clearly. the system right now that's unsustainable and damaging max you're asking an extraordinarily intelligent question and the way that open source intelligence works is that a guy like me recognizes the value of a question from the guy like you and then commissions a crowd source answer we actually go out and we ask not just the public but academics civil society commerce of course of the media and non-governmental and

nonprofits and we do what the danish call a citizen wisdom council just as iceland was the only country that responded properly to the massive fraud by the banks of so also can i think we get a proper answer to this question of yours i don't know the answer but i think you know let me get rich and frost and robert let me let me let me put this out there you know there are what you're describing is what someone like kim dotcom in new zealand was pursuing and the open source space and the democratization of information and the m.p.a. here in the united states and chris dodd who is running the m.p.a. states aswat invasion of his estate in new zealand so they reacted with a military operation that's how they're going to react so how do you stop them militarization of the protection of these monopolies from his acting out in a military sense i understand you're saying we're going to crowdsource the intelligence but they're not looking for intelligence they don't want the smart

grid they don't want to do it in a smart way they want their clip to chronic profits and if you get their way they're going to go you know pull out a gun and shoot you that's been the history well you're right and when you look at occupy which which was a movement that failed seven thousand people were arrested from occupying the united states over seven thousand and no bankers of significance of gone to jail yet you're absolutely correct when you say that the government at this time was a protective service not just for fraudulent bankers but for paedophilia as well the guy. overman is a protective service for big crime at some point two things are going to happen the first is the public and the one billion rich. are going to start pulling their money out of stocks they're going to stop buying things like coca-cola nestle that sucks water out of the aquifers they're going to go rogue on wal-mart which has done some good things but by and large wal-mart chills every mom and pop shop for one hundred miles around. within the five billion poor that's where i think the

future of capitalism linus and with the five billion poor are going to do is never get into the stock market in the first place their refrigerator costs two dollars and it's a ceramic jar inside of another ceramic jar that you bury in the ground and it keeps me fresh for five dollars of course you're going to move much more beyond that but the bottom line here is i believe that the future of capitalism and the future of hope we can tell it since is to be found in the south among the five billion poor and i see nobody in the bank each community that gets that yet well it appears that as long as interest rates aren't as arrow and as long as they have some pay five hundred has access to unlimited credit and as long as any time they make a mistake they get bailed out always saying in wall street in the city of london attempt to take all these companies private in other words it's their stock market as we know it's not going to exist anymore anyway because through all the mergers and acquisitions and all the buyback programs like bed bath and beyond just about

that other two billion dollar stock repurchase the cost of that is zero because interest rates are zero they're just taking it all private they don't want the public to have any access to this capital market whatsoever it's almost as if they want to go back to feudalistic times where it's lords and serves it's and now let me just jump ahead to a question i have a minute left but you are saying that anybody in the ninety nine percent can put any business or corporation ad of business overnight explain. oh how many i have to say since we have only one minute this is the book to buy. and to answer your question it's not any single person in the ninety nine percent it's all of them i really do believe that the federal reserve is going to be eradicated one of the states this is an area where i'm in absolute agreement with the libertarians the entire concept of a financial reserve and being allowed to create ninety percent credit out of

nothing is an absurdity it is a violation of every possible commonsense governance principle. but i want to and by pointing out that open source is the only kind of approach to business and governance that is affordable through operable and scalable there is an open source ecology that includes open cloud open software open hardware open spectrum and then there's so many other opens including technology and open business open patents and so forth were to beginning i believe of a renaissance in human productivity we have a nationalized everything to the point it has become obscene lee unproductive except in the false terms that the banks are using to define productivity today so there is a renaissance coming and it begins with the open source revolution all right robert

we're going to have to cut it off there this could have gone on for another forty minutes as les but we'll have to have you on again sad to continue this conversation thanks so much ray on a cause report it's my pleasure take care and that's going to do it for this edition of the kaiser report with may max kaiser and stacy herbert and i guess robert david stale his book is the open source everything manifesto if you like that and ties to it as a kaiser important the next time. crosstalk

rules in effect that means you can jump in anytime you want. we never saw that coming. we had no idea our children were gay. i would actually just at night pray to god you know me normal. they said you're a homo you're a homo and from that day in first grade i swear my life changed forever i became like the ridicule i don't get stopped still to this day. well alabama and texas instructs school teachers to tell pupils young people that homosexuality is not an acceptable lifestyle and also instructs them to say that homosexual sex in private

is a crime in those states if the church was going to fire me that's what they had to do but i was going to do this with. this is about making the business survive. the. corporations don't love your parishioners told hate corporations have no feeling. corporations to care about you or me corporation was weak or book profit. people come to untouched forests and leave massively for the sake come on. we're not going to quit we will not stop until it is done what is more precious music more moon.

breaking news on artsy burning expels a top cia official work in in germany after two government employees are accused of passing secrets to the u.s. . capitol hill more than eighty people including many children are confirmed dead in gaza as israel pomos more targets files to step up its our offensive and plans for a possible ground assault. and jihad this minutes and seize nuclear materials in iraq but the government played in for international help to prevent the uranium compounds being used in terror attacks.